Real Estate Investment Trusts (REITs) pay no corporate taxes, yet surprisingly, their average leverage ratio is more than twice that of taxable firms (46% vs. 20%). We develop and test a model that helps explain this puzzle. The primary result of the model is that credit constrained firms'...

We examine foreclosure discounts and their subsequent impact on investor returns in Berlin's housing market from 1984 to 2022. Utilizing hedonic regression models and matching techniques on a data set of housing transactions, we determine that foreclosure discounts, ranging from 20% to 50%, are...